- Q1'22 total revenue of $342
million, up 14% y/y and representing a two-year CAGR of
27%
- Q1'22 total bookings of $393
million, up 12% y/y and representing a two-year CAGR of
26%
- Continued execution of long term strategy illustrated by
increased revenue generated through partners1 in Q1'22
of $82 million, up 41% y/y and
transaction revenue2 of $36.6
million, an increase of 24% y/y
- Adopted board-approved financial plan to reach 20% FCF margins
by 2025
NEW
YORK, May 16, 2022 /PRNewswire/ -- Wix.com Ltd.
(Nasdaq: WIX) today reported financial results for the first
quarter ended March 31, 2022. In
addition, the Company provided its initial outlook for the second
quarter as well as expectations for full year 2022. Please visit
the Wix Investor Relations website at https://investors.wix.com/ to
view the Q1'22 Shareholder Update and other materials.
"Wix has remained focused on executing on our long-term
opportunities, our product and marketing roadmaps, and
concentrating on what we can control despite the recent months of
instability and volatility," said Avishai
Abrahami, Wix co-founder and CEO. "Investments over the last
several years have driven a significant expansion of our
addressable market through the growth of our product platform,
product innovation and development and go-to-market activities.
We'll continue to push these efforts forward to build the best
platform so any type of user and any business can build a powerful
and successful digital presence."
Lior Shemesh, CFO at Wix, added,
"Volatility and uncertainty remain elevated creating headwinds to
overall revenue growth. We are focused on prudent cost management
and driving operational efficiencies, from which we are already
beginning to see results, and are instating a plan to achieve 20%
FCF margins by 2025 . Our Partners initiative continues to grow at
high rates, generating 41% y/y revenue growth in Q1. In
addition, we were happy to announce our new B2B partnership with
LegalZoom, further validating our product platform and brand as a
premier technology platform to serve small businesses."
Wix's management team and business leaders will host an Investor
& Analyst Day and will share a detailed overview of the
company's key growth initiatives, a three-year financial plan, and
long-term financial framework on Thursday,
May 19, 2022 at 8:30 am ET.
The RSVP form can be found here.
Q1 2022 Financial Results
- Total revenue in the first quarter of 2022 was $341.6 million, up 14% y/y and representing a
two-year CAGR of 27%
-
- Total revenue on a y/y constant currency basis was $343.2 million, up 14% y/y
- Creative Subscriptions revenue in the first quarter of 2022 was
$255 million, up 13% y/y and
representing a two-year CAGR of 20%
- Creative Subscriptions ARR increased to $1.04 billion, up 12% y/y
- Business Solutions revenue in the first quarter of 2022 was
$86.6 million, up 17% y/y and
representing a two-year CAGR of 54%
- Total bookings in the first quarter of 2022 were $393.2 million, up 12% y/y and representing a
two-year CAGR of 22%
-
- Total bookings on a y/y constant currency basis was
$399.4 million, up 14% y/y
- Creative Subscriptions bookings in the first quarter of 2022
were $299.8 million, up 12% y/y and
representing a two-year CAGR of 20%, including a change in unbilled
contractual obligations of $14.1
million
- Business Solutions bookings in the first quarter of 2022 were
$93.5 million, up 13% y/y and
representing a two-year CAGR of 53%
- Total gross margin on a GAAP basis in the first quarter of 2022
was 61%
-
- Creative Subscriptions gross margin on a GAAP basis was
75%
- Business Solutions gross margin on a GAAP basis was 19%
- Total non-GAAP gross margin in the first quarter of 2022 was
62%
-
- Creative Subscriptions gross margin on a non-GAAP basis was
76%
- Business Solutions gross margin on a non-GAAP basis was
21%
- GAAP net loss in the first quarter of 2022 was $(227.3) million, or $(3.95) per share
-
- Includes approximately $116
million of unrealized losses, net of taxes, from our equity
investments, primarily attributed to the decrease in share price of
monday.com (Nasdaq: MNDY), which was excluded from non-GAAP
results
- Non-GAAP net loss in the first quarter of 2022 was $(41.4) million, or $(0.72) per share
- Net cash used in operating activities for the first quarter of
2022 was $13.7 million, while capital
expenditures totaled $19.9 million,
leading to free cash flow of $(33.6)
million
-
- Excluding the capex investment associated with our new
headquarters office build out, free cash flow would have been
$(18.1) million
Financial Outlook
We continue to experience a high level of volatility in demand
for online services -- as many companies do today -- due to the
combination of macroeconomic headwinds and global uncertainty.
While it remains challenging to confidently forecast our
business with this ongoing volatility and uncertainty, we are
confident in the fundamental strength of our business and our
ability to execute on what we can control. Since last summer,
conversion of users to subscriptions and retention remain stable,
indicating that our business is in a steady state of growth, not a
deteriorating one, giving us confidence that once macroeconomic
conditions improve, we will return to higher levels of growth.
As of today, we expect total revenue in Q2'22 to be $342 - $346
million, representing 8 - 10% y/y growth. This range
takes into account the negative impact of approximately
$0.6 million due to the closure of
our activities in Russia and
certain regions of Ukraine and
headwinds of approximately $4 million
due to y/y changes in FX rates. Excluding these, we would have
expected Q2'22 revenue to grow 10 - 11% y/y.
If we do not see further deterioration in the macro environment,
for the full year 2022 we believe revenue growth will be 10 - 13%
y/y. This range includes the negative impact from suspending
activities in Russia and certain
regions in Ukraine, which we
estimate accounts for approximately $3
million in revenue in 2022, and approximately $20 million in headwinds due to y/y changes in FX
rates. Excluding these, our expectation for revenue growth
for the full year would be 12 - 15% y/y, assuming no further
deterioration in the macro environment.
Further, despite macroeconomic headwinds, we remain committed to
driving profitable growth and have already undertaken actions this
year to improve gross margins and reduce operating expenses.
During our upcoming Investor and Analyst Day, we will provide
more details on our multi-year plans to increase incremental
margins and share our recently adopted, board-approved financial
plan to achieve 20% FCF margin by 2025.
Conference Call and Webcast Information
Wix will host a conference call to discuss the results at
8:30 a.m. ET on Monday, May 16, 2022.
To participate on the live call, analysts and investors should dial
+1-877-667-0467 (US/ Canada),
+1-346- 354-0953 (International) or 1-809-315-362 (Israel) and reference Conference ID 7607579. A
telephonic replay of the call will be available through
May 23, 2022 at 11:30 a.m. ET by dialing +1-855-859-2056 and
providing Conference ID 7607579.
Wix will also offer a live and archived webcast of the
conference call, accessible from the "Investor Relations" section
of the Company's website at https://investors.wix.com/.
About Wix.com Ltd.
Wix is a leading platform to
create, manage and grow a digital presence. What began as a website
builder in 2006 is now a complete platform providing users with
enterprise-grade performance, security and a reliable
infrastructure. Offering a wide range of commerce and business
solutions, advanced SEO and marketing tools, Wix enables users to
take full ownership of their brand, their data and their
relationships with their customers. With a focus on continuous
innovation and delivery of new features and products, anyone can
build a powerful digital presence to fulfill their dreams on
Wix.
For more about Wix, please visit our Press Room
Investor Relations:
ir@wix.com
Media Relations:
pr@wix.com
Non-GAAP Financial Measures and Key Operating Metrics
To supplement its consolidated financial statements, which are
prepared and presented in accordance with U.S. GAAP, Wix uses the
following non-GAAP financial measures: bookings, cumulative cohort
bookings, bookings on a constant currency basis, revenue on a
constant currency basis, non-GAAP gross margin, non-GAAP operating
income (loss), non-GAAP net income (loss), non-GAAP net income
(loss) per share, free cash flow, free cash flow, as adjusted, free
cash flow margins, non-GAAP R&D expenses, non-GAAP S&M
expenses, non-GAAP G&A expenses, non-GAAP operating expenses,
non-GAAP cost of revenue expense, non-GAAP financial expense,
non-GAAP tax expense (collectively the "Non-GAAP financial
measures"). Measures presented on a constant currency or FX neutral
basis have been adjusted to exclude the effect of y/y changes in
foreign currency exchange rate fluctuations. Bookings is a non-GAAP
financial measure calculated by adding the change in deferred
revenues and the change in unbilled contractual obligations for a
particular period to revenues for the same period. Bookings include
cash receipts for premium subscriptions purchased by users as well
as cash we collect from business solutions, as well as payments due
to us under the terms of contractual agreements for which we may
have not yet received payment. Cash receipts for premium
subscriptions are deferred and recognized as revenues over the
terms of the subscriptions. Cash receipts for payments and the
majority of the additional products and services (other than Google
Workspace) are recognised as revenues upon receipt. Committed
payments are recognised as revenue as we fulfill our obligation
under the terms of the contractual agreement. Non-GAAP gross
margin represents gross profit calculated in accordance with GAAP
as adjusted for the impact of share-based compensation expense,
acquisition-related expenses and amortization, divided by
revenue. Non-GAAP operating income (loss) represents
operating income (loss) calculated in accordance with GAAP as
adjusted for the impact of share-based compensation expense,
amortization, acquisition-related expenses and sales tax expense
accrual and other G&A expenses (income). Non-GAAP net income
(loss) represents net loss calculated in accordance with GAAP as
adjusted for the impact of share-based compensation expense,
amortization, sales tax expense accrual and other G&A expenses
(income), amortization of debt discount and debt issuance costs and
acquisition-related expenses and non-operating foreign exchange
expenses (income). Non-GAAP net income (loss) per share represents
non-GAAP net income (loss) divided by the weighted average number
of shares used in computing GAAP loss per share. Free cash flow
represents net cash provided by (used in) operating activities less
capital expenditures. Free cash flow, as adjusted, represents free
cash flow further adjusted to exclude capital expenditures
associated with our new headquarters. Free cash flow margins
represent free cash flow divided by revenue. Non-GAAP cost of
revenue represents cost of revenue calculated in accordance with
GAAP as adjusted for the impact of share-based compensation
expense, acquisition-related expenses and amortization. Non-GAAP
R&D expenses represent R&D expenses calculated in
accordance with GAAP as adjusted for the impact of share-based
compensation expense, acquisition-related expenses and
amortization. Non-GAAP S&M expenses represent S&M expenses
calculated in accordance with GAAP as adjusted for the impact of
share-based compensation expense, acquisition-related expenses and
amortization. Non-GAAP G&A expenses represent G&A expenses
calculated in accordance with GAAP as adjusted for the impact of
share-based compensation expense, acquisition-related expenses and
amortization. Non-GAAP operating expenses represent operating
expenses calculated in accordance with GAAP as adjusted for the
impact of share-based compensation expense, acquisition-related
expenses and amortization. Non-GAAP financial expense represents
financial expense calculated in accordance with GAAP as adjusted
for unrealized gains of equity investments, amortization of debt
discount and debt issuance costs and non-operating foreign exchange
expenses. Non-GAAP tax expense represents tax expense calculated in
accordance with GAAP as adjusted for provisions for income tax
effects related to non-GAAP adjustments.
The presentation of this financial information is not intended
to be considered in isolation or as a substitute for, or superior
to, the financial information prepared and presented in accordance
with GAAP. The Company uses these non-GAAP financial measures
for financial and operational decision making and as a means to
evaluate period-to-period comparisons. The Company believes
that these measures provide useful information about operating
results, enhance the overall understanding of past financial
performance and future prospects, and allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision making.
For more information on the non-GAAP financial measures,
please see the reconciliation tables provided below. The
accompanying tables have more details on the GAAP financial
measures that are most directly comparable to non-GAAP financial
measures and the related reconciliations between these financial
measures. The Company is unable to provide reconciliations of free
cash flow, free cash flow, as adjusted, cumulative cohort bookings,
non-GAAP gross margin, and non-GAAP tax expense to their most
directly comparable GAAP financial measures on a forward-looking
basis without unreasonable effort because items that impact those
GAAP financial measures are out of the Company's control and/or
cannot be reasonably predicted. Such information may have a
significant, and potentially unpredictable, impact on our future
financial results.
Wix also uses Creative Subscriptions Annualized Recurring
Revenue (ARR) as a key operating metric. Creative Subscriptions ARR
is calculated as Creative Subscriptions Monthly Recurring Revenue
(MRR) multiplied by 12. Creative Subscriptions MRR is calculated as
the total of (i) all active Creative Subscriptions in effect on the
last day of the period, multiplied by the monthly revenue of such
Creative Subscriptions, other than domain registrations in effect
on the last day of the period; (ii) the average revenue per month
from domain registrations; (iii) monthly revenue from other
partnership agreements.
Forward-Looking Statements
This document contains forward-looking statements, within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties.
Such forward-looking statements may include projections regarding
our future performance, including, but not limited to revenue,
bookings and free cash flow, and may be identified by words like
"anticipate," "assume," "believe," "aim," "forecast," "indication,"
"continue," "could," "estimate," "expect," "intend," "may," "plan,"
"potential," "predict," "project," "outlook," "future," "will,"
"seek" and similar terms or phrases. The forward-looking statements
contained in this document, including the quarterly and annual
guidance, are based on management's current expectations, which are
subject to uncertainty, risks and changes in circumstances that are
difficult to predict and many of which are outside of our control.
Important factors that could cause our actual results to differ
materially from those indicated in the forward-looking statements
include, among others, our expectation that we will be able to
attract and retain registered users and generate new premium
subscriptions; our expectation that we will be able to increase the
revenue we derive from the sale of premium subscriptions and
business solutions, through our partners; our expectation that new
products and developments, as well as third-party products we will
offer in the future within our platform, will receive customer
acceptance and satisfaction, including the growth in market
adoption of our online commerce solutions; our assumption that
historical user behavior can be extrapolated to predict future user
behavior; our prediction of the future revenues generated by our
user cohorts and our ability to maintain and increase such revenue
growth; our expectation to maintain and enhance our brand and
reputation; our expectation that we will effectively execute our
initiatives to scale and improve our user support function through
our Customer Care team, and thereby increase user retention, user
engagement and sales; our expectation that our products created for
markets outside of North America
will continue to generate growth in those markets; our plans to
successfully localize our products, including by making our
product, support and communication channels available in additional
languages and to expand our payment infrastructure to transact in
additional local currencies and accept additional payment methods;
our expectations regarding the extent of the impact on our business
and operations of the COVID-19 pandemic, including uncertainty
relating to expected consumer dynamics after the COVID-19 pandemic
subsides, the effectiveness of government policies, vaccine
administration rates and other factors; our expectation regarding
the impact of fluctuations in foreign currency exchange rates on
our business; our expectations relating to the repurchase of our
ordinary shares and/or Convertible Notes pursuant to our expected
repurchase program; our expectation that we will effectively manage
the growth of our infrastructure; changes we expect may occur to
technologies used in our solutions; our expectations regarding the
outcome of any regulatory investigation or litigation, including
class actions; our expectations regarding future changes in our
cost of revenues and our operating expenses on an absolute basis
and as a percentage of our revenues, as well as our ability to
achieve profitability; our expectations regarding changes in the
global, national, regional or local economic, business,
competitive, market, and regulatory landscape, including as a
result of COVID-19 and as a result of the military invasion of
Ukraine by Russia; our planned level of capital
expenditures and our belief that our existing cash and cash from
operations will be sufficient to fund our operations for at least
the next 12 months and for the foreseeable future; our expectations
with respect to the integration and performance of acquisitions;
our ability to attract and retain qualified employees and key
personnel; our expectations about entering into new markets and
attracting new customer demographics, including our ability to
successfully attract new partners and grow our partner activities
as anticipated and other factors discussed under the heading "Risk
Factors" in the Company's annual report on Form 20-F for the year
ended December 31, 2021 filed with
the Securities and Exchange Commission on April 1, 2022. Any forward-looking statement made
by us in this press release speaks only as of the date hereof.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict
all of them. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future developments or otherwise.
1 We define partners revenue as revenue
generated through agencies and freelancers that build sites or
applications for other users as well as revenue generated through
B2B partnerships, such as Vistaprint or NTT. We identify agencies
and freelancers building sites or applications for others using
multiple criteria including but not limited to the number of sites
built, participation in the Wix Partner Program and/or the Wix
Marketplace or Wix products used, among other criteria. Partners
revenue includes revenue from both the Creative Subscriptions and
Business Solutions segments.
2 Transaction revenue is a portion of Business
Solutions revenue, and we define transaction revenue as all revenue
generated through transaction facilitation, primarily from Wix
Payments as well as Wix POS, shipping solutions and multi-channel
commerce and gift card solutions.
Wix.com Ltd.
|
CONSOLIDATED STATEMENTS
OF OPERATIONS - GAAP
|
(In thousands, except
loss per share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2021
|
|
2022
|
|
(unaudited)
|
Revenues
|
|
|
|
Creative
Subscriptions
|
$
226,436
|
|
$
254,968
|
Business
Solutions
|
74,343
|
|
86,629
|
|
300,779
|
|
341,597
|
|
|
|
|
Cost of
Revenues
|
|
|
|
Creative
Subscriptions
|
55,746
|
|
64,873
|
Business
Solutions
|
58,053
|
|
69,876
|
|
113,799
|
|
134,749
|
|
|
|
|
Gross Profit
|
186,980
|
|
206,848
|
|
|
|
|
Operating
expenses:
|
|
|
|
Research and
development
|
95,086
|
|
119,865
|
Selling and
marketing
|
144,455
|
|
156,714
|
General and
administrative
|
34,394
|
|
45,686
|
Total operating
expenses
|
273,935
|
|
322,265
|
Operating
loss
|
(86,955)
|
|
(115,417)
|
Financial income
(expenses), net
|
32,925
|
|
(144,473)
|
Other income
|
65
|
|
46
|
Income (loss) before
taxes on income
|
(53,965)
|
|
(259,844)
|
Taxes on income (tax
benefit)
|
8,149
|
|
(32,555)
|
Net loss
|
$
(62,114)
|
|
$
(227,289)
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(1.10)
|
|
$
(3.95)
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
56,280,561
|
|
57,479,429
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
Period ended
|
|
December 31,
|
|
March 31,
|
|
2021
|
|
2022
|
Assets
|
(audited)
|
|
(unaudited)
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
451,355
|
|
$
386,609
|
Short-term
deposits
|
411,687
|
|
456,644
|
Restricted cash and
deposits
|
7,012
|
|
7,010
|
Marketable
securities
|
456,515
|
|
356,380
|
Trade
receivables
|
30,367
|
|
42,016
|
Prepaid expenses and
other current assets
|
32,877
|
|
55,264
|
Total current
assets
|
1,389,813
|
|
1,303,923
|
|
|
|
|
Long-Term
Assets:
|
|
|
|
Prepaid expenses and
other long-term assets
|
41,554
|
|
44,045
|
Property and equipment,
net
|
50,437
|
|
57,081
|
Marketable
securities
|
387,341
|
|
333,853
|
Intangible assets and
goodwill, net
|
89,547
|
|
87,964
|
Operating lease
right-of-use assets
|
101,095
|
|
108,929
|
Total long-term
assets
|
669,974
|
|
631,872
|
|
|
|
|
Total
assets
|
$ 2,059,787
|
|
$ 1,935,795
|
|
|
|
|
Liabilities and
Shareholders' Equity (deficiency)
|
|
|
|
Current
Liabilities:
|
|
|
|
Trade
payables
|
$
114,584
|
|
$
134,754
|
Employees and payroll
accruals
|
83,251
|
|
78,503
|
Deferred
revenues
|
484,446
|
|
517,550
|
Accrued expenses and
other current liabilities
|
62,816
|
|
61,334
|
Operating lease
liabilities
|
29,201
|
|
31,477
|
Total current
liabilities
|
774,298
|
|
823,618
|
|
|
|
|
Long-term deferred
revenues
|
59,966
|
|
64,414
|
Long-term deferred tax
liability
|
72,803
|
|
37,176
|
Convertible notes,
net
|
922,974
|
|
924,275
|
Other long-term
liabilities
|
2,267
|
|
2,282
|
Long-term operating
lease liabilities
|
81,764
|
|
86,513
|
Total long-term
liabilities
|
1,139,774
|
|
1,114,660
|
|
|
|
|
Total
liabilities
|
1,914,072
|
|
1,938,278
|
|
|
|
|
Shareholders' Equity
(deficiency)
|
|
|
|
Ordinary
shares
|
111
|
|
113
|
Additional paid-in
capital
|
994,795
|
|
1,077,536
|
Treasury
Stock
|
(199,997)
|
|
(199,997)
|
Accumulated other
comprehensive income
|
(1,056)
|
|
(4,708)
|
Accumulated
deficit
|
(648,138)
|
|
(875,427)
|
Total shareholders'
equity (deficiency)
|
145,715
|
|
(2,483)
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 2,059,787
|
|
$ 1,935,795
|
Wix.com Ltd.
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
OPERATING
ACTIVITIES:
|
|
|
|
|
Net
loss
|
$
(62,114)
|
|
$
(227,289)
|
|
Adjustments to
reconcile net loss to net cash provided by (used in) operating
activities:
|
|
|
|
|
Depreciation
|
3,432
|
|
3,535
|
|
Amortization
|
599
|
|
1,574
|
|
Share based
compensation expenses
|
46,631
|
|
60,984
|
|
Amortization of debt
discount and debt issuance costs
|
1,407
|
|
1,301
|
|
Changes in accrued
interest and exchange rate on short term and long term
deposits
|
15
|
|
45
|
|
Amortization of premium
and discount and accrued interest on marketable securities,
net
|
2,323
|
|
1,549
|
|
Revaluation on
Marketable equity securities
|
-
|
|
151,645
|
|
Deferred income taxes,
net
|
7,351
|
|
(35,575)
|
|
Changes in operating
lease right-of-use assets
|
4,681
|
|
8,838
|
|
Changes in operating
lease liabilities
|
(6,035)
|
|
(9,647)
|
|
Increase in trade
receivables
|
(6,176)
|
|
(11,649)
|
|
Increase in prepaid
expenses and other current and long-term assets
|
(73,916)
|
|
(12,313)
|
|
Increase (decrease) in
trade payables
|
(3,262)
|
|
21,686
|
|
Increase (decrease) in
employees and payroll accruals
|
40,554
|
|
(4,740)
|
|
Increase in short term
and long term deferred revenues
|
50,330
|
|
37,552
|
|
Increase (decrease) in
accrued expenses and other current liabilities
|
12,668
|
|
(1,158)
|
|
Net cash provided by
(used in) operating activities
|
18,488
|
|
(13,662)
|
|
INVESTING
ACTIVITIES:
|
|
|
|
|
Proceeds from
short-term deposits and restricted deposits
|
138,015
|
|
105,000
|
|
Investment in
short-term deposits and restricted deposits
|
(602)
|
|
(150,000)
|
|
Investment in
marketable securities
|
-
|
|
(72,155)
|
|
Proceeds from
marketable securities
|
90,097
|
|
61,380
|
|
Purchase of property
and equipment and payment of prepaid expenses
|
(3,720)
|
|
(19,283)
|
|
Capitalization of
internal use of software
|
(129)
|
|
(641)
|
|
Proceeds from sale of
marketable equity securities
|
-
|
|
3,193
|
|
Payment for Businesses
acquired, net of acquired cash
|
(5,586)
|
|
-
|
|
Purchases of
investments in privately held companies
|
-
|
|
(160)
|
|
Net cash provided by
(used in) investing activities
|
218,075
|
|
(72,666)
|
|
FINANCING
ACTIVITIES:
|
|
|
|
|
Proceeds from exercise
of options and ESPP shares
|
10,422
|
|
21,582
|
|
Net cash provided by
financing activities
|
10,422
|
|
21,582
|
|
INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS
|
246,985
|
|
(64,746)
|
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
168,858
|
|
451,355
|
|
CASH AND CASH
EQUIVALENTS—End of period
|
$
415,843
|
|
$
386,609
|
|
Wix.com Ltd.
|
KEY PERFORMANCE
METRICS
|
(In
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Creative
Subscriptions
|
226,436
|
|
254,968
|
|
Business
Solutions
|
74,343
|
|
86,629
|
|
Total
Revenues
|
$
300,779
|
|
$
341,597
|
|
|
|
|
|
|
Creative
Subscriptions
|
268,059
|
|
299,787
|
|
Business
Solutions
|
83,050
|
|
93,461
|
|
Total
Bookings
|
$
351,109
|
|
$
393,248
|
|
|
|
|
|
|
Free Cash
Flow
|
$
14,639
|
|
$
(33,586)
|
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
15,474
|
|
$
(18,148)
|
|
Creative Subscriptions
ARR
|
$
926,103
|
|
$
1,037,713
|
|
Wix.com Ltd.
|
|
RECONCILIATION OF
REVENUES TO BOOKINGS
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
2022
|
|
(unaudited)
|
Revenues
|
$
213,104
|
|
$
300,779
|
|
$ 341,597
|
Change in deferred
revenues
|
35,753
|
|
50,330
|
|
37,552
|
Change in unbilled
contractual obligations
|
-
|
|
-
|
|
14,099
|
Bookings
|
$
248,857
|
|
$
351,109
|
|
$ 393,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
2022
|
|
(unaudited)
|
Creative Subscriptions
Revenues
|
$
176,546
|
|
$
226,436
|
|
$ 254,968
|
Change in deferred
revenues
|
32,251
|
|
41,623
|
|
30,720
|
Change in unbilled
contractual obligations
|
-
|
|
-
|
|
14,099
|
Creative Subscriptions
Bookings
|
$
208,797
|
|
$
268,059
|
|
$ 299,787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2020
|
|
2021
|
|
2022
|
|
(unaudited)
|
Business Solutions
Revenues
|
$
36,558
|
|
$
74,343
|
|
$
86,629
|
Change in deferred
revenues
|
3,502
|
|
8,707
|
|
6,832
|
Business Solutions
Bookings
|
$
40,060
|
|
$
83,050
|
|
$
93,461
|
Wix.com Ltd.
|
RECONCILIATION OF
COHORT BOOKINGS
|
(In
millions)
|
|
Three Months
Ended
|
|
March 31,
|
|
2021
|
|
2022
|
|
|
|
|
|
|
Q1 Cohort
revenues
|
4
|
|
7
|
|
Q1 Change in deferred
revenues
|
32
|
|
21
|
|
Q1 Cohort
Bookings
|
$
36
|
|
$
28
|
|
Wix.com Ltd.
|
TOTAL ADJUSTMENTS GAAP
TO NON-GAAP
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
(1) Share based
compensation expenses:
|
(unaudited)
|
|
Cost of
revenues
|
$
3,501
|
|
$
4,231
|
|
Research and
development
|
23,288
|
|
28,720
|
|
Selling and
marketing
|
7,442
|
|
9,875
|
|
General and
administrative
|
12,400
|
|
18,158
|
|
Total share based
compensation expenses
|
46,631
|
|
60,984
|
|
(2)
Amortization
|
599
|
|
1,574
|
|
(3) Acquisition related
expenses
|
1,705
|
|
1,699
|
|
(4) Amortization of
debt discount and debt issuance costs
|
1,407
|
|
1,301
|
|
(5) Sales tax accrual
and other G&A expenses (income)
|
452
|
|
172
|
|
(6) Unrealized loss
(gain) on equity and other investments
|
(29,513)
|
|
151,645
|
|
(7) Non-operating
foreign exchange expenses (income)
|
2,590
|
|
4,132
|
|
(8) Provision for
income tax effects related to non-GAAP adjustments
|
6,788
|
|
(35,612)
|
|
Total adjustments of
GAAP to Non GAAP
|
$
30,659
|
|
$
185,895
|
|
Wix.com Ltd.
|
RECONCILIATION OF GAAP
TO NON-GAAP GROSS PROFIT
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Gross Profit
|
$
186,980
|
|
$
206,848
|
|
Share based
compensation expenses
|
3,501
|
|
4,231
|
|
Acquisition related
expenses
|
167
|
|
81
|
|
Amortization
|
97
|
|
761
|
|
Non GAAP Gross
Profit
|
190,745
|
|
211,921
|
|
|
|
|
|
|
Non GAAP Gross
margin
|
63%
|
|
62%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Gross Profit - Creative
Subscriptions
|
$
170,690
|
|
$
190,095
|
|
Share based
compensation expenses
|
2,586
|
|
3,385
|
|
Non GAAP Gross Profit -
Creative Subscriptions
|
173,276
|
|
193,480
|
|
|
|
|
|
|
Non GAAP Gross margin -
Creative Subscriptions
|
77%
|
|
76%
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Gross Profit - Business
Solutions
|
$
16,290
|
|
$
16,753
|
|
Share based
compensation expenses
|
915
|
|
846
|
|
Acquisition related
expenses
|
167
|
|
81
|
|
Amortization
|
97
|
|
761
|
|
Non GAAP Gross Profit -
Business Solutions
|
17,469
|
|
18,441
|
|
|
|
|
|
|
Non GAAP Gross margin -
Business Solutions
|
23%
|
|
21%
|
|
Wix.com Ltd.
|
RECONCILIATION OF
OPERATING LOSS TO NON-GAAP OPERATING LOSS
|
(In
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Operating
loss
|
$
(86,955)
|
|
$
(115,417)
|
|
Adjustments:
|
|
|
|
|
Share based
compensation expenses
|
46,631
|
|
60,984
|
|
Amortization
|
599
|
|
1,574
|
|
Sales tax accrual and
other G&A expenses
|
452
|
|
172
|
|
Acquisition related
expenses
|
1,705
|
|
1,699
|
|
Total
adjustments
|
$
49,387
|
|
$
64,429
|
|
|
|
|
|
|
Non GAAP operating
loss
|
$
(37,568)
|
|
$
(50,988)
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET
LOSS TO NON-GAAP NET LOSS AND NON-GAAP NET LOSS PER
SHARE
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Net loss
|
$
(62,114)
|
|
$
(227,289)
|
|
Share based
compensation expenses and other Non GAAP adjustments
|
30,659
|
|
185,895
|
|
Non-GAAP net
loss
|
$
(31,455)
|
|
$
(41,394)
|
|
|
|
|
|
|
Basic and diluted
Non GAAP net loss per share
|
$
(0.56)
|
|
$
(0.72)
|
|
Weighted average shares
used in computing basic and diluted Non GAAP net loss per
share
|
56,280,561
|
|
57,479,429
|
|
Wix.com Ltd.
|
RECONCILIATION OF NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH
FLOW
|
(In
thousands)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
Net cash provided by
(used in) operating activities
|
$
18,488
|
|
$
(13,662)
|
|
Capital expenditures,
net
|
(3,849)
|
|
(19,924)
|
|
Free Cash
Flow
|
$
14,639
|
|
$
(33,586)
|
|
|
|
|
|
|
Capex related to future
Wix HQ office build-out
|
835
|
|
15,438
|
|
Free Cash Flow,
excluding capex related to future Wix HQ office
build-out
|
$
15,474
|
|
$
(18,148)
|
|
Wix.com Ltd.
|
RECONCILIATION OF BASIC
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND THE DILUTED
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March 31,
|
|
|
2021
|
|
2022
|
|
|
(unaudited)
|
|
|
|
|
|
|
Basic and diluted
weighted-average shares used to compute net loss per
share
|
56,280,561
|
|
57,479,429
|
|
|
|
|
|
|
The following items
have been excluded from the diluted weighted average number of
shares outstanding
because they are anti-dilutive:
|
|
|
|
|
Stock
options
|
4,845,705
|
|
5,099,095
|
|
Restricted share
units
|
2,067,705
|
|
2,799,022
|
|
Convertible Notes
(if-converted)
|
3,969,514
|
|
3,969,514
|
|
|
67,163,485
|
|
69,347,060
|
|
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SOURCE Wix.com Ltd.